Description

In 2006, Ruth's Chris Steak House was fresh off of a sizzling initial public offering and was now interested in growing their business internationally. With restaurants in just four countries outside the United States, a model to identify and rank new international markets was needed. Provides a practical example for students to take quantitative and non-quantitative variables to create a short list of potential new markets.

Learning objective:

To provide a practical example for students to take quantitative (e.g., per capita gross domestic product (GDP), population, and urbanization rates) and non-quantitative variables (e.g., political and social issues) to create a short list of potential new markets. To help achieve these objectives it: (1) Allows students to familiarize themselves with relevant procedures for short-listing possible new markets via identifying critical variables; (2) Encourages students to discuss the primary problems confronting the franchisor in balancing quantitative and non-quantitative data; (3) Provides an illustrative example of an experienced company venturing out of its comfort zone; and (4) Asks students to create a list of countries--and the methodology employed to create that list--to answer the question, where do we go next?